As states passed workers compensation laws starting in the early 1900s through 1949, each state established its unique workers compensation system. This resulted in a mishmash of laws, benefits, compensability and eligibility from state to state.
Determining what benefits apply is complicated because the varying states focus only on what their laws require. Courts have ruled that a state has the right to apply its own workers compensation rules and standards to each case. Hence, most states simply don’t care what other states allow, only what is required under their workers compensation laws. This lack of coordination and cooperation between states in addition to the variations in individual states’ laws, state funds and monopolistic states difficulties, piggybacking of benefits worries, coverage concerns — just to name a few complications — often combine to create ambiguity and significant challenges for employers, insurance agents and other workers compensation stakeholders.
While there is no silver bullet that solves the conundrum of workers compensation’s extraterritorial issues, stakeholders can minimize and/or avoid many of the common pitfalls of extraterritorial issues that can result in a lack of coverage leading to uncovered claims, penalties, criminal prosecution and financial hardship. The white paper entitled Workers Compensation Extraterritorial Issues has been recently expanded and updated. Written by Maureen Gallagher, the insurance industry’s foremost expert on extraterritorial issues, the paper provides clarity, insight and practical advice to insurance professionals grappling with many of these issues. The white paper is an indispensable, in-depth study enhanced by Gallagher’s expert analysis. It is information that needs to be in every insurance agent’s knowledge base.
Now available here: States of Confusion – WC Extraterritorial Issues – 2-17 Edition